Weekly Market Report

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With February’s jobs data looking better than expected and inflation running well within the Fed’s target range, mortgage rates ticked higher. It s not much, and this affordability environment is still hugely attractive, but it’s just enough to notice. Combined with low inventory, low rates have been a prominent motivation for buyers. But sellers need the real encouragement these days. Consistent year-over-year price gains have proven insufficient thus far, but that’s subject to change come spring.

In the Twin Cities region, for the week ending March 9:

  • New Listings decreased 6.1% to 1,361
  • Pending Sales increased 10.9% to 1,019
  • Inventory decreased 30.7% to 12,476

For the month of February:

  • Median Sales Price increased 15.5% to $160,000
  • Days on Market decreased 22.2% to 112
  • Percent of Original List Price Received increased 3.4% to 93.7%
  • Months Supply of Inventory decreased 38.8% to 3.0

Click here for the full Weekly Market Activity Report.From The Skinny.

Twelve Consecutive Months of Price Gains

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Twin Cities homes sold for a higher median price than during the year prior for the 12th consecutive month. This is a significant milestone demonstrating a real and sustainable recovery. Several patterns continued from 2012: pending purchase activity was up, new and existing supply levels were down, prices were higher and distressed market activity eased.

There were 2,736 closed home sales during February 2013, 4.7 percent fewer than February 2012. There were 3,689 pending sales, a 2.0 percent increase over last year. The median sales price rose 15.5 percent to $160,000. Inventory levels declined 31.6 percent to 12,202 active listings, the lowest number for any month going back to January 2003. The number of homes for sale is at a 10-year low.

“We’re watching seller activity almost more than buyer activity,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS®. “Bank listing activity is down while traditional seller activity is up. That’s an encouraging shift.”

Looking at activity by sale type, traditional closed sales were up 21.5 percent; foreclosure sales were down 23.5 percent; short sales were down 28.5 percent. Since traditional homes sell for about 75.0 percent more than foreclosures, the median sales price rose, as it has for 12 straight months compared to year-ago levels. The 10K Housing Value Index – which controls for data variability – showed a tamer 10.2 percent increase to $179,010. Stronger confidence and less economic uncertainty will encourage more seller activity, thereby increasing the supply of homes for sale. There is evidence this is improving, as traditional seller activity has been on the rise lately.

A healing distressed segment has also facilitated recovery. At 72.3 percent, traditional homes represented more than 70.0 percent of all new listings for the first time since June 2008. Traditional homes also made up 55.4 percent of all closed sales. The traditional median sales price was up 14.2 percent to $205,500; the foreclosure median sales price was up 12.3 percent to $116,522; the short sale median sales price was up 10.1 percent to $127,750.

Months’ supply of inventory fell 40.8 percent to 2.9 months. Figures below 4.0 months suggest we’re in a fledgling seller’s market. Homes sold in 113 days, on average, or 21.5 percent quicker than February 2012. Sellers received 93.7 percent of their list price, on average, up from 90.6 percent last year. Conventional financing comprised 46.7 percent of all closed sales; FHA financing was used on 20.9 percent of sales; cash buyers made up 25.1 percent of sales.

“Judging by the number of inquiries agents are receiving, buyers seem prepared and motivated this spring,” said Emily Green, MAAR President-Elect. “We anticipate an uptick in new listings and we hope it is enough to meet the strength of buyer demand.”

Weekly Market Report

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The prevailing trend continues to be more showings, more offers, higher prices and faster sales, with inventory becoming a growing problem — or rather, a shrinking problem. There aren’t enough homes to choose from for hungry buyers eager to get in while the gettin’ is good. Meanwhile, rents are on the rise and there is a rising sense of improvement for new construction projects. With national unemployment down to 7.7 percent, there is a springy breeze in the air for better days ahead, even in the face of increased taxes and higher cable TV prices.

In the Twin Cities region, for the week ending March 2:

  • New Listings increased 0.9% to 1,422
  • Pending Sales increased 12.0% to 1,001
  • Inventory decreased 31.0% to 12,371

For the month of February:

  • Median Sales Price increased 15.5% to $160,000
  • Days on Market decreased 22.2% to 112
  • Percent of Original List Price Received increased 3.4% to 93.7%
  • Months Supply of Inventory decreased 40.8% to 2.9

Click here for the full Weekly Market Activity Report.From The Skinny.

Weekly Market Report

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REALTORS® must sell. Whether it’s themselves, a property or an offer, an integral part of the life is convincing other people of something. Clean clothes, shiny shoes, a tucked shirt, upright posture. That’s just to get in the door. But it’s not enough to walk the talk. Proving to be the real(TOR®) deal means you know your stuff. You need stats, real stats, GOOD stats. Impress with empirical industry know-how and dazzle with substantiated evidence. Don’t be the kid in class with grass stains, gum in hair and an unsharpened No. 3 pencil. Bring the following local real estate expertise to the local listing presentation.

In the Twin Cities region, for the week ending February 23:

  • New Listings decreased 6.1% to 1,176
  • Pending Sales increased 3.1% to 927
  • Inventory decreased 30.9% to 12,341

For the month of January:

  • Median Sales Price increased 14.3% to $160,000
  • Days on Market decreased 24.1% to 107
  • Percent of Original List Price Received increased 2.5% to 93.5%
  • Months Supply of Inventory decreased 40.0% to 3.0

Click here for the full Weekly Market Activity Report.From The Skinny.

Weekly Market Report

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Here’s an oldie but goodie: All Real Estate is Local. We’ve all heard it. It’s why industry insiders don’t pay much attention to national housing statistics. The national housing market is just an agglomeration of local housing markets. It’s like saying there is a national garage sale market. They’re all local. You don’t grab an umbrella in Miami based on the weather forecast in Seattle. So why would someone in San Francisco base a home sale or purchase decision on market data from Boston? Here’s your data for your local housing market.

In the Twin Cities region, for the week ending February 16:

  • New Listings decreased 4.9% to 1,196
  • Pending Sales increased 7.9% to 916
  • Inventory decreased 31.0% to 12,309

For the month of January:

  • Median Sales Price increased 14.3% to $160,000
  • Days on Market decreased 24.1% to 107
  • Percent of Original List Price Received increased 2.5% to 93.5%
  • Months Supply of Inventory decreased 40.0% to 3.0

Click here for the full Weekly Market Activity Report.From The Skinny.

February Monthly Skinny Video

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Where has the Twin Cities real estate market been and where is it heading? This monthly summary provides an overview of current trends and projections for future activity. Narrated by Cotty Lowry (2013 Treasurer, Minneapolis Area Association of REALTORS®), video produced by Chelsie Lopez.

Weekly Market Report

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Transparency. We like it when our politicians, stock brokers and mechanics have it. But what about our housing markets? It’s empowering to know that home sales were up 10.0 percent in your state, or that the average home sold for 250,000 in your city or that 20.0 percent of sales in your neighborhood were foreclosures. It allows – no – it encourages both existing and would-be home buyers to make smarter decisions, which ultimately conserves the increasingly scarce taxpayer dollar. In turn, that allows us to invest in things we value as a society like infrastructure, technology, education, research and job training.

In the Twin Cities region, for the week ending February 9:

  • New Listings decreased 6.7% to 1,229
  • Pending Sales increased 5.3% to 914
  • Inventory decreased 31.2% to 12,225

For the month of January:

  • Median Sales Price increased 14.3% to $160,000
  • Days on Market decreased 24.1% to 107
  • Percent of Original List Price Received increased 2.5% to 93.5%
  • Months Supply of Inventory decreased 42.0% to 2.9

Click here for the full Weekly Market Activity Report.From The Skinny.

Strong Start to 2013 for Twin Cities Housing Market

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While we’re all exercising more and eating better – at least for another week – the local housing market has upheld several important resolutions. Four patterns continued from 2012: buyer demand was up, new and existing supply levels were down, prices were higher and distressed market activity eased. There were 2,797 closed home sales in January 2013, 11.0 percent higher than January 2012. There were 3,456 pending sales, a 13.3 percent increase over last year. Inventory levels declined 32.2 percent to 11,977 active listings, the lowest number for any month going back to January 2003. That marks an official 10-year low.

“Last year, traditional sellers re-entered the market in increasing numbers,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS®. “With our limited inventory, that’s led consumers to purchase more traditional properties, which sell for roughly 60 percent more than distressed properties.”

Traditional closed sales, in fact, were up 41.8 percent. That’s helped boost year-over-year median sales price comparisons for 11 straight months. The median home price was up 14.3 percent to $160,000. The 10K Housing Value Index – which adjusts for seasonality and segment bias – showed a tamer 8.2 percent increase to

$175,529. With the number of homes for sale at a 10-year low, seller confidence has become an increasingly vital component to continued housing recovery. There is evidence of improvement on this front, as traditional seller activity has been on the rise.

A healing distressed segment facilitated recovery. Traditional homes comprised 65.9 percent of all new listings, up from 56.3 percent last January, and made up 57.1 percent of all closed sales compared to 44.8 percent last year. In other words, fewer low-priced foreclosures and short sales both entered and sold off the market.

The traditional median sales price was up 3.6 percent to $199,900; the foreclosure median sales price was up 22.5 percent to $124,900; the short sale median sales price was up 2.9 percent to $125,500.

Weekly Market Report

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As we take our first gentle steps into the first year of predicted housing market improvement in many years, let’s look at why we’re feeling bullish. Affordability is high; coupled with historically low interest rates, people are ready to lay their money down. Inventory is generally down, creating more competition among those searching for homes. Desire plus demand has created more frequent tickles of price rising just as foreclosures and short sales are selling through the market, becoming less of a drag on those prices. The residential real estate recovery is tentative and fragile, but it’s still a recovery.

In the Twin Cities region, for the week ending February 2:

  • New Listings decreased 9.6% to 1,120
  • Pending Sales increased 1.8% to 872
  • Inventory decreased 31.4% to 12,213

For the month of January:

  • Median Sales Price increased 14.3% to $160,000
  • Days on Market decreased 24.1% to 107
  • Percent of Original List Price Received increased 2.5% to 93.5%
  • Months Supply of Inventory decreased 42.0% to 2.9

Click here for the full Weekly Market Activity Report.From The Skinny.

Weekly Market Report

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You can have data without information, but you cannot have information without data. In real estate, numbers aren’t just numbers. Numbers tell consumers how much house they can afford. Numbers tell agents whether their customers are buying into appreciating or depreciating communities. Numbers forewarn against bubble inflation. They also offer insight into which way the pendulum is swinging: toward buyers or sellers. Numbers have a calming way of removing uncertainty from decisions. Let’s examine our most recent set of numbers.

In the Twin Cities region, for the week ending January 26:

  • New Listings decreased 4.9% to 1,038
  • Pending Sales increased 3.1% to 800
  • Inventory decreased 31.4% to 12,245

For the month of December:

  • Median Sales Price increased 15.9% to $168,000
  • Days on Market decreased 23.4% to 108
  • Percent of Original List Price Received increased 3.5% to 93.8%
  • Months Supply of Inventory decreased 40.0% to 3.0

Click here for the full Weekly Market Activity Report.From The Skinny.